11.Which of the following statements best explains the importance of the timing of changes in discretionary fiscal policy? Changes in discretionary fiscal policy must be timed properly if they are going to:

A)   help the government achieve a balanced budget.

B)   exert a stabilizing influence on an economy.

C)   enable the government to control the money supply.

D)   lead to efficient allocation of funds in capital markets.

12.Proper timing of fiscal policy is important if the government is to:

A)   generating revenues from taxes and sales equal to its expenditures.

B)   stimulate economic activity during a recession and restrain the economy during an inflationary boom.

C)   increasing the supply of loanable funds needed to place downward pressure on the real rate of interest.

D)   creating the supply of money needed to promote full employment, price stability, and rapid economic growth.

答案和详解如下：

11.Which of the following statements best explains the importance of the timing of changes in discretionary fiscal policy? Changes in discretionary fiscal policy must be timed properly if they are going to:

A)   help the government achieve a balanced budget.

B)   exert a stabilizing influence on an economy.

C)   enable the government to control the money supply.

D)   lead to efficient allocation of funds in capital markets.

The correct answer was B)

Proper timing of discretional policy is needed to reduce economic instability. If timed incorrectly, the fiscal policy change could increase rather than reduce economic instability.

12.Proper timing of fiscal policy is important if the government is to:

A)   generating revenues from taxes and sales equal to its expenditures.

B)   stimulate economic activity during a recession and restrain the economy during an inflationary boom.

C)   increasing the supply of loanable funds needed to place downward pressure on the real rate of interest.

D)   creating the supply of money needed to promote full employment, price stability, and rapid economic growth.

The correct answer was B)

If fiscal policy is going to reduce economic instability, changes in policy must stimulate the economy during a recession and restrain it during an inflationary boom.